The resumption of capital flows to developing countries in the nineties is intertwined in the Brazilian case with the attempts to achieve inflation stabilization. A very restrictive monetary policy has offered probably the world's highest yield to fixed income investments. In the context of...

In 1994-98, Brazil's domestic debt grew very rapidly while remaining short in maturity. The main policy recommendations for managing this domestic debt situation: maintain a tighter fiscal stance and consider the use of inflation-linked bonds. Brazil's domestic debt has posed two challenges to...

This paper examines the recent evolution of the Brazilian public domestic debt and interprets it in light of the confidence crisis literature. The analysis of the recent developments in the Brazilian public domestic debt market shows that the likelihood of a default must not be assessed only...

O mercado futuro de depositos interfinanceiros tornou-se, ao longo dos ultimos anos, um dos mais importantes mercados financeiros da economia brasileira, movimentando hoje em dia um volume de aproximadamente R$ 40 bilhoes. Entretanto, dadas as idiossincrasias desse mercado, a abordagem...

Using the different response timings of credit demand and supply, we isolate supply shifts after monetary policy shocks. We show that the bank lending channel exists in Brazil: after an increase (decrease) in the basic interest rate (Selic), banks reduce (increase) the quantity of new loans and...